Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying ( x ) Authorizing ( x ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: New construction of a 4-story building with 25 affordable residential units and 14 parking spaces
Entity Name: 757 Sanford Management, LLC
Entity Address: 124 Polk Street, Box #S-2, Newark, New Jersey 07105
Sale Amount: $150,000.00
Cost Basis: ( X ) $15.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $279,300.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within twenty-four (24) months following transfer of property ownership from the City to the Redeveloper
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( X ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
757-763 Sandford Avenue/ Block 4131/ Lot 5,6,7,8/ West Ward
Additional Information:
body
WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the “Redevelopment Law”), authorizes municipalities to participate in the redevelopment and improvement of areas that are in need of redevelopment or rehabilitation; and
WHEREAS, in order to stimulate the reinvigoration of the City, by Resolution 7Rdo(AS) 061505 adopted on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Redevelopment Law; and
WHEREAS, the Municipal Council of the City of Newark (the “Municipal Council”) then approved the West Ward Redevelopment Plans, including any amendments, for the Redevelopment Area within which the Properties is located (the “Redevelopment Plans”); and
WHEREAS, the City has determined that the Properties are no longer needed for any public use and that redevelopment of the Properties will contribute to the social and economic improvement of the West Ward in accordance with the intent, goals and objectives of the City’s strategy to rehabilitate and reinvigorate neighborhoods with quality housing; additional stores, services, recreational facilities, and improved public spaces; and
WHEREAS, the 757 Sanford Management LLC (the “Redeveloper”) has submitted a letter of intent to the City’s Department of Economic and Housing Development outlining its intention to redevelop the Properties and construct a 4-story building with 25 affordable residential units and 14 parking spaces (the “Project”); and
WHEREAS, based upon the City’s review of the Proposal and other information, the City has determined that the Redeveloper possesses the proper qualifications, financial resources and the capacity to acquire and redevelop the Properties; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the Department of Economic and Housing Development has recommended that the City sell the Properties to the Redeveloper for the consideration of One Hundred and Fifty Thousand Dollars and Zero Cents ($150,000.00) (“Purchase Price”), which price, and under such terms as, the City deems to be reasonable, for the purpose of redeveloping the Properties, in accordance with the Redevelopment Law, the Redevelopment Agreement, and the Redevelopment Plans; and
WHEREAS, N.J.S.A. 40A:12A-8(e) and (f) of the Redevelopment Law authorize the City to enter into contracts or agreements for the planning, construction or undertaking of any development project or redevelopment work in an area designated as an area in need of rehabilitation; and
WHEREAS, the City and the Redeveloper have engaged in negotiations relative to the Project and the City has determined that in furtherance of goals and objectives of the West Ward Redevelopment Plan and the City’s Master Plan, it is in the City’s best interest to enter into a Redevelopment Agreement with the Redeveloper for the purpose of setting forth in detail each Parties’ respective undertakings, rights and obligations in connection with the development and construction of the Project; and
WHEREAS, the Redeveloper acknowledges that all uses to which the Project may be devoted are guided and controlled by the applicable West Ward Redevelopment Plan and the Redevelopment Agreement, and that under no circumstances shall the Redeveloper, or any assignee or Affiliate (as defined herein) undertake any development of the Project unless it is in strict accordance with the Redevelopment Law, Applicable Law (as defined herein) and the Redevelopment Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, or either of them, hereby: authorize the Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development to enter into the Agreement for the Redevelopment of Land by and Between the City of Newark and 757 Sanford Management LLC (the “Redevelopment Agreement), in substantially the form attached hereto as Exhibit A.
2. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to effectuate certain business terms and conditions related to the Redevelopment Agreement and may enter into any related documents which may be necessary in order to effectuate the Redevelopment Agreement.
3. The executed Redevelopment Agreement shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of Department of Economic and Housing Development.
4. The Deputy Mayor/Director of Department of Economic and Housing Development is authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Agreement, subject to full written disclosure of such extension(s) (in the form of a signed Memorandum to be submitted to the Office of the City Clerk prior to adoption) to the Municipal Council of the City of Newark by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City of Newark’s Corporation Counsel.
5. The Redeveloper shall have thirty (30) days from the date this resolution is certified by the Office of the City Clerk to execute the attached Redevelopment Agreement for the Redevelopment of Land and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Redevelopment Agreement within this thirty (30) day time period, the authorization provided by this resolution shall be null and void, unless the Acting Deputy Mayor/Director of Department of Economic and Housing Development agrees in writing to extend this thirty (30) day period.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into an Agreement for the Redevelopment of Land with 757 Sanford Management LLC, with an address of 124 Polk Street, Box #S-2, Newark, New Jersey 07105, for the redevelopment of the property identified on the City of Newark Tax Map Block 4131, Lots 3, 4, 5, 6, 7, and 8.